Strong support for Nifty at 10,160; top 5 stocks which can give up to 7% return

Nifty opened with gap-down and continued its falling streak for three consecutive days. On hourly scale, it has given a breakdown from ‘Flag' pattern and resumed its downfall after facing resistance around multiple technical parameters.

The index has taken support around its major moving average of 200 SMA i.e. 10,160 levels which might work as strong support zone in near term. Sustenance trade below 10140 marks may drag Index further lower till 9,900-10,000 zones.

Bank Nifty

Nifty Bank has given a fresh breakdown from a 'Bearish Flag' pattern on daily scale indicating resumption of downtrend. It faced strong hurdle around its two major moving averages of 20 EMA & 200 SMA i.e. 24,930 and 24,820 levels respectively. Support is seen around 24,400 levels. Decisive trade below this level may drag Index further lower till 24,000 zones.

Furthermore, RSI (14) is trading around 40 levels. We are expecting Nifty Bank to consolidate within a range of 24,000-25,100 levels.

Below are the top 5 stocks which can give up to 7% return:

NBCC (India) | Rating: Buy | Target: Rs 207, stop loss: Rs 195 | Return: 3%

National Aluminium Company | Rating: Buy | Target: Rs 72, stop loss: Rs 63 | Return: 7%

Action Construction Equipment | Rating: Buy | Target: Rs 193, stop loss: Rs 175 | Return: 6%

Biocon | Rating: Sell | Target: Rs 570, stop loss: Rs 600 | Return: 2%

Infibeam Incorporation | Rating: Sell | Target: Rs 144, stop loss: Rs 154 | Return: 3%

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